Report to COUNCIL for noting

Transcription

1 14/171 Subject: Prepared by: Insurance Peter Higgs (Deputy Chief Executive) Meeting Date: 28 May 2014 Report to COUNCIL for noting SUMMARY Prior to the Christchurch earthquakes Council was able to obtain material damage insurance for its assets at an affordable price. While the global disaster scene and financial crisis did influence the market, factors such as a competitive insurance and reinsurance market, the final strength of Local Authority Protection Programme Disaster Fund (LAPP) and group buying through Bay of Plenty Local Authority Shared Services (BOPLASS) resulted in discounted premium pricing. However the insurance world s view of New Zealand (Inc) risk profile has changed. One effect on Council is that its insurance costs overall have increased from $521, /12 to $1,025,090 (excl. GST) in 2012/13. Insurance cover including LAPP for 2013/14 is $967, (excl. GST). Obvious questions about the financial sustainability of these premium prices arise and the alternatives such as not insuring or self-insuring need to be considered. This report outlines Council s current position. A change in approach to partial self-insurance is a significant one. A review of the items covered by the policies and the level of insurance was done for the 2013/14 insurance cover. An Insurable Risk Profiling and Insurance Gap Analysis has been carried out in conjunction with Aon, our insurance broker. This has identified a number of areas to review, although the risks for some have been managed in other ways. Disaster insurance is a changing market. The Local Authority Protection Programme Disaster Fund (LAPP) is a cash accumulation mutual pool owned by local authorities. BOPLASS has recently been presented with a proposal by Aon that offers an alternative option to the LAPP fund. Local Government New Zealand is also looking at entering the market. It is proposing to create a local authority-owned agency to replace the current local authority owned insurers. Page 1 of 11

2 RECOMMENDATIONS That the Council 1. receives the report. Peter Higgs Deputy Chief Executive Group Manager Engineering & Works Keywords: Insurance Page 2 of 11

3 1. BACKGROUND Council assets are covered by two separate insurance schemes. Firstly, the Material Damage/Business Interruption scheme provided through BOPLASS and secondly, the Local Authority Protection Programme (LAPP) for disaster insurance. Material Damage/Business Interruption is the normal cover associated with damage to assets. However it does not include underground assets in the event of a disaster. In the past this has been covered through LAPP. The two Canterbury earthquakes have had an enormous effect on the country across a wide spectrum of financial management, not the least of which is the LAPP fund and its integration with Government s Civil Defence Emergency Response Plan for Local Authorities to cover up to 40% of losses. 2. INSURANCE OVERVIEW Insurance is one of a number of mechanisms used to mitigate or minimise the impacts of potential financial losses as a result of an adverse event. There are many measures that we use to minimise the risks to Council s infrastructure and other services. These include a variety of approaches. Using risk management techniques, where the likelihood of an event occurring and the consequence of that event are assessed, a decision is made on how best to protect the Council and its assets. Typically for infrastructure this will include eliminating the risks, applying best practice design standards, providing for alternative methods of delivery and providing redundancy in the service. Ultimately insurance is seen as a mechanism to reduce financial losses if all else fails. For example, the Gisborne wastewater treatment plant has been designed to withstand natural disasters at a higher level because of its strategic and public health importance. Floor levels are above highest known flood levels, tsunami levels at a 2,500 year return period, and foundations designed for a 1,000 year return period earthquake. At an operational level redundancy is built into the system and controls as well as providing a back-up generator in the event of disruption to the power supply a real risk to Gisborne generally. Overlaying this is the provision of insurance cover if events greater than those occur. 2.1 General Insurance General Insurance is also used to cover other events and risks such as: Material damage, Machinery breakdown, Fire, Business interruption, Motor vehicles and other liabilities (refer Appendix 1 for a summary of items covered by the policy). Insurance is of value to a local authority as it provides a transfer of risk from the insured (Council) to the insurer. 2.2 Disaster Insurance General insurance does not normally cover damage to underground infrastructure assets. This is a major issue that councils must address. An arrangement has been set up to address this through the LAPP scheme and is discussed below. Page 3 of 11

4 2.2.1 Asset Cover required After a disaster central government provides local authorities with different levels of support for different types of assets. These groups are: (1) Roading, (2) Water assets, (3) Parks, (4) Buildings and other investments. (1) Roading State highways are maintained by central government with other public roads and bridges being the responsibility of local authorities. The major disaster risk for roading is flood damage and this occurs regularly, but the financial impacts vary over time. The mechanism used is to budget an annual sum for the event based on historic records and trends. The repair works are then subsidised by Government at the current Funding Assistance Rate (FAR). (2) Water Assets Water assets generally include the infrastructure for public water supply, wastewater, stormwater and flood protection. Prior to 1991 central government took full responsibility for all costs associated with the restoration of water assets after a disaster. Since then as set out in the Guide to the National Civic Defence Emergency Plan, the responsibility for replacing or repairing these assets, beyond a certain threshold, is shared 60:40 between central and local government. The central government contribution will only be available where the local authority can demonstrate that the damaged assets have been properly maintained and the council has made provision to meet the remaining 40%. This is what the LAPP scheme provides for. See below for details of the scheme. The total value of water assets of the council members in LAPP is over $15 billion ranging from $16m to $2b with an average value of $260m. Gisborne District Council s water assets are valued at $557m. The following table shows the Gisborne District Council assets covered by LAPP and the replacement values (figures include a 30% loading: see below under valuations). Gisborne Water Assets $M Water Supply 203 Sewerage 186 Stormwater 97 Flood Control (3) Parks Parks (excluding park buildings and associated infrastructure) are generally not insured against disasters. (4) Buildings and other investments Local authority buildings typically include swimming pools, halls, sports facilities, community housing, libraries and council buildings. Other investments include building contents, vehicles, plant and equipment - also other assets such as forestry. Cover for these assets are normally placed with private insurance companies. Page 4 of 11

5 2.2.2 Valuation of Council Assets The Christchurch experiences have highlighted a major concern in how assets are valued. The focus has been on valuations to meet accounting requirements. The accounting valuation takes into account the remaining life of the asset and condition assessment to determine ongoing renewal programmes. This is not how much it would cost to replace the asset after a disaster. Replacement costs do not include the increased costs following disasters. These arise from the unavailability of materials, the need to accommodate and transport labour and additional plant, investigations and design. For example, it may take significant investigations to find where the damage has occurred in underground reticulation. Replacement cannot be carried out in an ordered and programmed fashion. Also valuations tend to be based on average rates. After a disaster, repairs and replacement tend to be in more difficult sites and circumstances. Typically these can add up to 30% or more additional costs. This can be even higher, particularly when needing to keep essential services operating. From Christchurch there are examples of over 100% increases in costs. A loading of 30% has been included in the table above. The cost of repairing/replacing these assets following a catastrophic event would be beyond any one council s means to absorb. Council therefore needs to have an arrangement in place to fund its 40% share under the National Civic Defence Emergency Plan. 2.3 Options for Securing Disaster Cover Cover is not required for parks or roads. Insurance cover for buildings and other investments is available through insurance companies and is discussed later. Funding provisions for water assets that could meet central government s requirement to contribute its 60% following a civic disaster include: LAPP Private insurance Self-insurance A potential variation to self-insurance is to open a line of credit with a bank contingent on a disaster of a minimum size. It is not really an acceptable risk management approach because if a disaster occurs the local authority will be saddled with significant debt to replace assets at a time when it will be facing other significant unbudgeted costs. Similarly meeting costs out of existing operational expenditure is not a valid risk management approach when the size of the potential loss is high LAPP The Local Authority Protection Programme Disaster Fund (LAPP) is a cash accumulation mutual pool. It is non-profit and has an income tax exempt status. Civic Assurance is the Fund's Administration Manager. The LAPP fund was established in 1993 to help its New Zealand local authority members pay their share of infrastructure replacement costs for water, sewerage and other uninsurable essential services damaged by natural disaster. Since 1991, central and local government have shared responsibility for these costs. Beyond a threshold, central government will pay 60% of the restoration costs, leaving local authorities 40%. Of the 78 local authorities in New Zealand, 58 are currently Fund members. Page 5 of 11

6 LAPP does not provide liability cover. It does not provide protection for events such as fraud, rural fire-fighting, machinery breakdown, material damage, public liability, etc which are available through commercial insurance companies. LAPP covers water management assets through a fund that members contribute to annually. This contribution is set by the LAPP Board, with additional cover secured by a dedicated reinsurance programme. The cover is designed to provide for the local share to match the central government 60% contribution after a disaster. The LAPP scheme is designed to provide cover for up to two major events in any one year (e.g. a 7.0 earthquake every 8 years or a volcano eruption greater than 1 in 1000 years). The LAPP scheme has worked well up to 22 February To put this into context, the Christchurch earthquakes were extreme events. The 4 September 2010 earthquake had a return period of 800 years while the 22 February 2011 earthquake had a return period of between 2,500 and 10,000 years. LAPP does not pay tax on contributions or investments. It does not attempt to return a profit and has lower administration costs. It is owned by the member councils and the management of the assets and control of the claims process is retained by the local authorities. In the absence of claims the contributions are retained as equity and allow the mutual fund to build. This has meant in the past Council contributions have been reduced and cover increased when the fund has reached an appropriate level. In most respects LAPP is a self-insurance approach but with the risks spread across a number of member councils and also spread geographically, i.e. the risk of an event affecting all members at one time is very low. This means that most of the benefits of self-insurance are retained apart from the ability to make one s own call on claims or adjust premiums. However, it is noted that as LAPP is owned by its members, there is a willingness to pay out on claims. Also most of the disadvantages of self-insurance are overcome with a LAPP approach. The advantages of LAPP include: LAPP covers members up to the amount identified on their asset register giving certainty to the amount that will be recovered in the case of a disaster. LAPP can provide customised coverage, e.g. can offer CCOs up to 100% as they are not eligible for the central government 60% contribution. LAPP has a reasonable track record and provided cover as expected for Christchurch following the recent earthquakes. The disadvantages of LAPP include: Risk spread is nationally rather than globally. Christchurch has illustrated there can be some gaps between cover granted by LAPP and cover under reinsurance. Fund may be exhausted by large incident. Councils retain a contingent liability if there are claims in a particular year which exceed the fund provisions Private Insurance Private insurers can cover local authorities against natural disasters. This was not an option when the LAPP fund was set up. Due to changes in the global insurance market this type of insurance is now available to Councils and is being offered as an option during the 2014/15 renewal. This is competitive when compared with the contributions being sought from LAPP and contains none of the contingent liability which comes with being a member of LAPP. Page 6 of 11

7 The benefits of private insurers include: Cover up to the maximum sum insured is guaranteed Customised or additional coverage can be included Degree/level of solvency of insurers is known There is no contingent liability Insuring in the global market means that risk is spread The disadvantages of private insurers include: Clients are exposed to market forces, e.g. possible increases in excesses or premiums and/or policy exclusions on renewal. Premiums are loaded to cover other costs, e.g. marketing and shareholder profit. No guarantee that policy will be renewed when it expires. Premiums paid remain with the insurer. Small print may mean claims are contested, reduced or refused. There is a risk of an insurer failing and limited or no funds being available to meet claims Self-Insurance Self-insurance is a risk management method in which an amount of money is set aside to compensate for the future potential loss. This is usually based on expected claims assumptions so that the amount set aside over time should be enough to cover the future uncertain loss. By retaining, determining the risks, and paying the claims from the financial provisions, the overall process can be cheaper than buying commercial insurance and there is no excess. This is more likely the case for pooled assets or lower valued items where the total loss of the entire pool of assets is unlikely, e.g. motor vehicles. However catastrophic risks described as self-insured are probably more accurately described as not insured. Catastrophic risks are highly unpredictable and high in loss value, and are normally underwritten by the reinsurance or wholesale insurance market where this risk can be spread. The benefits of self-insurance include: Premiums are retained, which would otherwise be paid and lost to the insurer. The fund can be built up over time and earn interest. There is certainty that claims will be paid as council makes its own decisions. Council can adjust its premiums depending upon the circumstances (this can also be a disadvantage). There is an improved focus on risk management. There is no cross subsidisation of risk, especially with higher risk councils (although this is minimised in LAPP by the setting of annual contributions for each member based on their asset value and risk of exposure). The disadvantages of self-insurance include: The fund in early years will be insufficient to meet a major claim and it takes a long time to build critical mass. Even if the fund has built critical mass, this is unlikely to be the case once a major claim is met. Page 7 of 11

8 Self-insurance performs poorly when major claims are back-to-back. Changes in circumstances could see contributions being reduced or the fund raided for other purposes Alternative Options for Disaster Cover This is a changing market. BOPLASS has recently been presented with a proposal by Aon that offers an alternative option to the LAPP fund. It proposes to reduce current costs by 34% and reduce excesses by 30%. It also proposes to remove the contingent liability. However, over the longer-term, these premiums may increase to reflect the true costs and the need to return a profit to the insurer. Local Government NZ is also looking at entering the market. It is proposing to create a local authority-owned Agency to replace the current local authority owned insurers. It would use its exclusive negotiating role and collective buying power to negotiate insurances on behalf of all local authorities but settles via individual contracts. 3. WHAT ARE WE COVERED FOR AND AT WHAT COSTS? 3.1 General Insurance There have been significant changes in the insurance market following the Christchurch earthquakes. International events have also made the renewal process more complicated and costly. Civic Assurance has withdrawn from the property insurance market and Council s Material Damage and Business Interruption cover has moved to a panel of insurers. This approach had to be taken due to the reduced capacity available in the New Zealand market post the Christchurch earthquakes. The scheme is provided through BOPLASS and is managed by Aon New Zealand. The panel of insurers and their percentage participation is; Zurich Insurance New Zealand Ltd 30% QBE Insurance (International) Ltd 20% Ace Insurance Ltd 20% Lumley General Insurance Ltd 20% American Home Insurance Company (Chartis) 10% This also means that there has been a restructuring of the excess levels under the policy. In some areas the deductible or excess has risen from $2,500 to $25,000. A summary of the items covered by the policy, the limits of liability and deductibles is attached as Appendix A. Premiums have increased from 2010 largely in the areas where Earthquake/Natural Disaster cover is taken. In addition, following completion of a full reinstatement insurance valuation for all buildings and associated structures, there has been a considerable increase in the total insured value at risk. As noted above, the actual replacement costs following a disaster can typically be 30% greater that the valuation used for accounting purposes. The total annual premium for the policy is $615,672 (excl. GST). A summary of the premiums for the items covered by the policy is attached as Appendix B. Page 8 of 11

9 3.2 Disaster Insurance Material Damage does not include infrastructural assets such as underground services for water, wastewater, stormwater, dams, reservoirs, stopbanks and the like. These are covered through LAPP and the central government 60% contribution in the event of a disaster. A summary of the items covered by the LAPP scheme is attached as Appendix C. Direction on the central government policy for financial support following a civil defence disaster is provided for in the Guide to the National CDEM Plan - Section 26 - Financial Assistance from Central Government, Revised June The threshold for reimbursement by central government of 60% of the essential infrastructure repair costs (plus other eligible response costs) is determined by: % of the net capital value of the city council, district council or unitary authority involved; 0.002% of the net capital value of unitary authorities where the assets in question are of a type that ordinarily are normally managed by regional councils; or 0.002% of the net capital value in the case of regional councils. The net capital value is as defined in the Local Government Act 1974: net capital value, in relation to any district, means the total of the capital value of all the rateable property in the district and the value of all property in the district in respect of which the local authority receives grants in lieu of rates. For Gisborne District Council the threshold for reimbursement is $600,306 based on a net capital value of $8.004 billion. By way of example, this means that for a disaster with eligible repair costs of $10m, Council would receive a Government contribution of $5.640m (being 60% of the $9.400 above the threshold of $600,306). All members of LAPP have the same deductible per claim which is based on 0.1% of the asset value covered by the LAPP fund, to a maximum of $500,000. It is noted that the deductible applies to the overall claim even if there is widespread damage involving multiple assets and locations. Council s asset value covered by the fund is $557m, which would be a deductible of $557,000, but this is limited to $500,000. As of 1 July 2009, the fund also includes cover for the gap between the central government deductible and the LAPP deductible so in essence Council s effective deductible is limited to $500,000 for any one event. Page 9 of 11

10 The total premium for the LAPP cover is $386,700 (excl. GST). Our contribution for the years 2012/13 and 2013/14 was $386,700k and $288,000 (excl. GST) respectively without taking into account any increase in asset value. 4. WHAT TO INSURE? Historically local authorities including Gisborne District Council have tended to insure the majority if not all above ground assets and infrastructure. Premiums were relatively low and deductibles were also set at low levels. Therefore, if loss or damage occurred no matter how minor, it was generally possible to have it met by insurance. There was little in the way of savings to be gained by removing small or superfluous properties from the insurance schedules. With the increase in the cost of insurance and deductibles, Council has now looked closely at what we insure. The following were considered in respect of all assets on the insurance property schedule. Is the replacement cost below the current deductible? Would Council replace or have a responsibility to replace the asset if loss or damage occurred? Would the asset be replaced with an identical one or something at a lesser cost functional replacement? Is present-value-only cover sufficient for some assets? Is the cost of demolition and removal of debris all that is required? Is the cost of keeping essential services operating covered? Under the Machinery Breakdown Policy for example, Council already only insures for breakdown of the major plant items such as those at the wastewater treatment plant and waterworks. Other more minor items of plant and machinery are not insured for breakdown as the cost of doing so across all items would be large and the potential claim recovery relatively small in comparison. These losses are generally treated as repairs and maintenance. Whilst reductions in the limits under the various liability policies could result in savings, these would be relatively minor in comparison to exposure resulting from reduced liability protection. A review has been made in respect of the following extra covers held by Council to determine whether they are still appropriate. In general it is the property insurance area where the greatest premium costs occur and opportunities existed to make premium savings on insurance held. Other areas included: Civil Defence Emergency costs, Personal Accident, Forest & Rural Fires costs. The scope of LAPP cover (underground infrastructure assets) has been reviewed with regard to the criticality of certain assets that are covered by this scheme. 5. INSURABLE RISK PROFILING & INSURANCE GAP ANALYSIS Aon has been engaged by Council to facilitate an Insurable Risk Profiling and Insurance Gap Analysis project in order to prioritise and quantify the insurable risks to which the organisation is exposed, and measure the response of Council s current insurance programme against these risks. Page 10 of 11

11 Aon has ensured that these risks are fully considered in the terms of limits and scope of the organisation s insurance programme. The insurance gap analysis has been undertaken to ensure that all significant risks in Council s risk profile are identified. This provides a better understanding of the potential impacts of insurable risks, how they are being financed, and assists in determining the preferred strategy for financing these risks. The project was initiated in November 2013 with a report received in April This highlighted the following key findings: 20% of risks perceived to be relevant to Council require review with 56% classified as insured 3% are deemed to be partially insured. These percentage levels are slightly below average for a local council in New Zealand. However, a number of risks that have been highlighted as needing to be reviewed will likely be determined to be insured or at least partly insured increasing the percentage levels towards the typical average. However, the risks for some have been managed in other ways. Page 11 of 11

12 APPENDIX A GENERAL INSURANCE POLICY SUMMARY Material Damage and combined Business Interruption Excluding Fire Covers: All Risk including Earthquake but excluding Fire Limit of Liability as per updated schedule provided June 2013: $206,083,892 Excess: - Non Earthquake/Natural Disaster Perils - $25,000 each and every loss - Earthquake/Natural Disaster 5% of the Material Damage Site Value with a minimum of $5,000 each site, except property pre 1935 where 10% of material Damage site value minimum of $10,000 Business Interruption Covers: Consequential Loss resulting from loss or damage to insured property Limit of Liability: - Shared limit all members for Additional Expenses/Increased Costs of Working - $8,000,000 Indemnity Period: 24 months Material Damage Fire Covers: Fire including fire caused by any natural disaster Sum Insured: $100,000,000 any one loss and all losses in the aggregate incurred by all of the insured for the period of insurance Excess: $25,000 each and every loss Gisborne District Council Specific Limits Loss of Revenue: $2,900,000 Loss of Rents Revenue: $302,000 Indemnity Period: 24 months Machinery Breakdown Covers: Breakdown of insured plant & machinery Limit of Liability as per updated schedule provided June 2013: $3,303,090 Excess: $2,000 Forestry Covers: Loss or damage to trees principally by fire and reinstatement costs Limit of Liability: Trees $4,216,492 Fire Fighting Costs: Shared Limit $1,000,000 Excess: $10,000 Motor Vehicle Covers: Accident damage to own vehicles and third party liability Section 1 Vehicles: Market Value limited to $150,000 unless declared Fleet Value: $1,441,750 Section 2 Third Party Liability: $10,000,000 Excess: 1% of the vehicle value, minimum $500 plus underage Drivers aged under 21 years additional $1,000 Drivers aged years additional $500 Nil excess for fire, theft or windscreens

13 Civil Defence Emergency Costs Covers: Costs arising out of a Civil Defence event Limit if Liability: Any one declared state of Civil Defence Emergency $500,000 and $1,000,000 in the aggregate for one period of insurance Excess: $50,000 Forest & Rural Fires Act Costs Covers: Costs incurred in relation to a fire event as Fire Authority for a Rural Fire District Limit of Liability: $500,000 any one loss and $1,000,000 in the aggregate Excess: $10,000 Professional Indemnity Covers: Alleged negligence by any act, error, omission or conduct in connection with the Council s business Limit of Liability: $50,000,000 any one claim and in the annual aggregate including costs and expenses Excess: $10,000 each and every claim costs inclusive General Liability Covers: Sums that Council becomes legally liable to pay in respect of Personal Injury or Property Damage caused by an occurrence in connection with the business Limits of Liability: - Public Liability - $50,000,000 each and every claim - Products Liability - $50,000,000 each and every claim and in the annual aggregate Excess: $2,000 each and every claim Harbour Masters Liability Covers: Sums which the Insured is legally liable for whilst exercising the statutory powers and duties of Harbour Master Limits of Liability: - Section A Harbour Masters Liability - $10,000,000 any one claim and in the annual aggregate - Section B Wreck Removal Cover - $5,000,000 any one claim and in the annual aggregate Excess: - Section A $20,000 each and every claim costs inclusive - Section B $100,000 each and every claim costs inclusive Employers Liability Covers: Liability from claims made by Employees for injuries falling outside Accident Compensation Legislation Limit of Liability: $1,000,000 any one claim and in the annual aggregate Excess: $1,000 each and every claim including costs Statutory Liability Covers: Defence costs and fines arising out of an allegation of a breach of an Act of Parliament other than an excluded Act Limit of Liability: $1,000,000 any one claim and in the annual aggregate Excess: $1,000 each and every claim including costs

14 Crime Covers: Employee Theft, Third Party Crime, Electronic and Computer Crime, Erroneous Funds Transfer Limit of Liability: $2,000,000 any one claim and in the annual aggregate Claim preparation costs: $50,000 Excess: $25,000 each and every claim including costs Personal Accident Covers: Insured persons for benefits in respect of accidental injury Insured Persons and Limits: - Permanent Staff and Elected Members: $100,000 - Casual Staff whilst in employment of Gisborne District Council: $50,000 Corporate Travel Covers: Insured Persons on Authorised and associated private travel for the events detailed in the policy Insured Persons: Executives, Employees, Elected Members and accompanying family Limits: Refer to policy schedule

15 APPENDIX B GENERAL INSURANCE POLICY PREMIUM SUMMARY Policy Insurer Gisborne Material Damage & Business Interruption combined Panel $356, Fire Service Levies $ 20, EQC $ 24, Business Interruption Panel $ 6, Motor Vehicle Zurich $ 13, Fire Service Levies Motor $ Civil Defence Emergency Costs Civic $ 13, Machinery Breakdown Civic $ 2, Travel ACE $ Marine Hull Lumley Personal Accident ACE $ 15, Forest & Rural Fire Costs Civic $ 5, Fine Arts Catlin Fine Arts Fire Service Levies Public/General Liability/Professional Indemnity QBE/NZI/Chartis $ 58, Employers Liability QBE/NZI $ 2, Statutory Liability QBE/NZI $ 2, Aviation Non Owners Airport Owners Asset Asset Crime Chartis $ 5, Harbour Masters/Wreck Removal QBE $ 52, Annual Contract Works Marine Open QBE Vero Stand Alone Directors and Officers Total Premium ex GST $580,606.74

16 APPENDIX C DISASTER INSURANCE POLICY SUMMARY LOCAL AUTHORITY PROTECTION PROGRAMME Gisborne District Council 2013 Infrastructure Assets Covered By the LAPP Fund Asset Asset Asset Asset Year Qty Units Covered Estimated Estimated major Estimated Class Category Type Description Description Built By Replacement disaster loading replacement No. Location LAPP? Cost cost using accounting including values 30.00% loading Bulk Water Supplies Water Reservoirs Knob Hill Reservoir 1964 Y $6,145,300 $1,843,590 $7,988, Bulk Water Supplies Water Reservoirs Hospital Hill Reservoir 1991 Y $9,218,100 $2,765,430 $11,983, Bulk Water Supplies Water Reservoirs Taumata Reservoir 1932 Y $2,281,900 $684,570 $2,966, Bulk Water Supplies Water Reservoirs HC Williams Dam 1974 Y $11,053,200 $3,315,960 $14,369, Bulk Water Supplies Water Reservoirs Clapcott Dam 1948 Y $13,161,700 $3,948,510 $17,110, Bulk Water Supplies Water Reservoirs Sang Dam 1972 Y $2,560,600 $768,180 $3,328,780 Misc Bores, Plant, Reservoirs Bulk Water Supplies Water Supply District Y $6,407,500 $1,922,250 $8,329, Bulk Water Supplies Water Supply District Catchments-Rural 2 units Y $1,379,700 $413,910 $1,793, Bulk Water Supplies Water Supply District Booster Pumps-Urban&Flats 13 units Y $2,488,270 $746,481 $3,234, Bulk Water Supplies Water Supply District Mains & Pipelines- Urban&Flats, brittle 253 km Y $75,800,300 $22,740,090 $98,540, Bulk Water Supplies Water Treatment Waingake TP Water Treatment Plant Y $12,264,300 $3,679,290 $15,943, Bulk Water Supplies Water Treatment Bushmere Rd Augmentation Plant Y $12,666,500 $3,799,950 $16,466, Bulk Water Supplies Water Supply Te Karaka Bore, Fliter & Reticulation Y $294,300 $88,290 $382, Bulk Water Supplies Water Supply Whatatutu Bore, Fliter & Reticulation Y $161,700 $48,510 $210, Waste Water ServicesSewerage Systems District Outfall - Marine Y $1,310,490 $393,147 $1,703, Waste Water ServicesSewerage Systems Te Karaka Pumps, Ponds, Reticulation 1 each Y $2,033,890 $610,167 $2,644, Waste Water ServicesSewerage Systems District Reticulation, brittle 212 km Y $59,899,180 $17,969,754 $77,868, Waste Water ServicesSewerage Systems District Manholes 2653 no. Y $7,812,930 $2,343,879 $10,156, Waste Water ServicesSewerage Systems District Laterals 89.5 km Y $18,680,270 $5,604,081 $24,284, Waste Water ServicesSewerage Systems District Pump Stations 33 Nos Y $13,025,300 $3,907,590 $16,932, Waste Water ServicesSewerage Systems District Treatment Plant 1 each Y $40,000,000 $12,000,000 $52,000, Waste Water Service Stormwater Systems District Culverts(50% Post 1977) km Y $15,508,578 $4,652,573 $20,161, Waste Water Service Stormwater Systems District In drain structures 54 units Y $1,738,020 $521,406 $2,259, Waste Water Service Stormwater Systems District Reticulation, brittle km Y $57,687,331 $17,306,199 $74,993, Flood Control Waipaoa River WRFCS Stopbanks 1953/ km Y $21,837,981 $6,551,394 $28,389,375 WRFCS Rock ptn wks/groynes 1953/1987+ km Y $5,409,541 $1,622,862 $7,032,403 WRFCS Culverts/outlets/rivetments 1953/1987+ km Y $9,694,887 $2,908,466 $12,603,353 Te Karaka Scheme TKFCS Stopbanks Y $1,091,077 $327,323 $1,418,400 TKFCS Culverts/Groynes Y $255,617 $76,685 $332,302 TKFCS Trees/Fences N $60,473 $18,142 $78,615 Turangunui/Taruheru TTRFCS Channel Improvements 1953/ km Y $608,895 $182,669 $791,564 TTRFCS Stopbanks/Revetments 1953/1987+ Y $2,287,061 $686,118 $2,973,179 TTRFCS Fences N $274,180 $82,254 $356,434 Land Drains, rivers & streams Land Drains Stopbanks km Y $929,574 $278,872 $1,208,446 Rock ptn wks/groynes km Y $109,375 $32,813 $142,188 Culverts/outlets/rivetments km Y $2,661,270 $798,381 $3,459,651 Drains/channels km Y $9,279,515 $2,783,855 $12,063,370 Total Infrastructural Asset Value $428,078,805 $128,423,642 $556,502,447 TOTAL COVERED BY LAPP: $427,804,625 $128,341,388 $556,146,013 Note 1 Asset values updated April 2011 based on values provided by David Bawden